2016
so far I may say showed jitters and served enough significant events that
influenced the markets. Brexit uncertainty, gold strength, China’s hesitations,
the US dollar’s pains and gains, the expectations, will or wont central bankers raise
the interest rates and the European banking meltdown. What a year!
But in fact the final quarter is proposing one of the biggest geo-political
events – the US elections. Donald Trump’s
surprise win of the Republican nomination, the hell-bent battle between him and Hillary Clinton, the
inevitable change in political direction that came out. This event will take place on 8th November when the actual elections
will happen. The time has almost come and chills the market participants to the
bone, because we all now hear the ticking of the clock.
So, what does this actually mean and are you going to make the rest of
this year your best year?
How to utilise the information to build a trading plan and how do we trade the US elections fever? This was widely discussed by the professional trader Paul Wallace on a free online webinar organized by my broker ActivTrades yesterday.
How to utilise the information to build a trading plan and how do we trade the US elections fever? This was widely discussed by the professional trader Paul Wallace on a free online webinar organized by my broker ActivTrades yesterday.
The following scenarios were pointed:
1/
In case of Clinton win markets will expect to see US dollar’s strength, gold
weakness, initial US equity and index strength and A&D sector strength.
2/
A trump win we’d expect to see US indices weakness, US dollar weakness
initially and CHF&JPY strength.
3/
A tie/small win for either side would be damaging for US prestige and therefore
the markets. And then will follow weakness in US indiced and US dollar
weakness, CHF, JPY&EUR strength.
The
main currency pair that will affected by the US election, namely USD/MXN,
AUD/USD, GBP/USD, EUR/USD, USD/CAD, as
well as gold and US indixes were technically observed.
In case you have missed this opportunity, worry not as the archive section is on your disiposal any time.
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